Greece concerns pull down crude prices

Prices fluctuate throughout the day

Crude oil prices ended lower at Nymex on Monday, 26 April 2010. Persisting problems surrounding Greece and its budgetary deficit kept crude prices fluctuating. A strong dollar also pushed prices lower.

On Monday, crude-oil futures for light sweet crude for June delivery closed at $84.2/barrel (lower by $0.92 or 1.1%). During intra day trading, crude fell to a low of $83.96 and rose to a high of $85.68. Last week, crude ended higher by 0.5%. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 5%.

Prices are still very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 153% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.

In the currency market on Monday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.2%. The euro slipped as German Chancellor Angela Merkel said in a press conference, that aid would be provided to Greece if absolutely necessary and if Greece meets certain conditions, cautioning that an aid deal still needs to be worked out.

Other energy products followed crude oil lower on Monday. Gasoline for June delivery declined a penny, or 0.6%, to $2.3453 a gallon.

On Monday, natural-gas futures bucked the trend to post gains. Natural gas for June delivery, the most active contract, rose a penny, or 0.2%, to $4.3510 per million British thermal units.

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for May delivery closed lower by Rs 44 (1.2%) at Rs 3,736/barrel. Natural gas for April delivery closed at unchanged at Rs 189.2/mmbtu.